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BAHRAIN-US-ISRAEL-PALESTINIANS-ECONOMY
Palestinians shun US prosperity pledges despite financial woes
RAMALLAH, Palestinian Territories, June 24, 2019 (BSS/AFP) – Boxes of
unsold biscuits are piled up in a West Bank warehouse, a sign of tough
economic times faced by Palestinians who are determined not to be wooed by
Washington’s economic pledges.
“Money does not replace the dignity of our people and the justness of our
cause,” said Mazen Sinokrot, whose company produces foodstuffs and a range of
other goods.
A former Palestinian finance minister, Sinokrot said he had been invited
to a US-sponsored economic conference in Bahrain this week but declined.
The United States aims to showcase its vision of the potential economic
benefits to the Palestinians if — after decades of hostilities and failed
peace initiatives — they were to agree a deal with Israel.
But when the White House unveiled the financial details of the plan on
Saturday, it was immediately rejected by the Palestinian government.
“The economic situation should not be discussed before the political one.
And as long as there is no political (solution), we do not deal with any
economic issues,” said Palestinian president Mahmud Abbas, giving his reason
for not attending the Manama meeting.
Nearly all Palestinian business leaders are set to also boycott the
conference, despite the hard financial conditions at home.
At the Sinokrot company’s factory near Ramallah, in the occupied West
Bank, two of the three biscuit production lines have been switched off for
the past month.
“(People) who were able to buy two packets a day are now buying one or
none at all,” said production head Majd Sinokrot.
The economy in the Palestinian territories is flagging, with only minor
growth in the West Bank last year and gross domestic product in the Gaza
Strip declining by eight percent.
The World Bank recently described an “unsustainable economic situation”,
with unemployment topping 30 percent across the West Bank and Gaza Strip.
In the strip, which has been under a crippling Israeli blockade for more
than a decade, the jobless rate last year stood at 52 percent.
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– Palestinians reject deal –
The Manama conference is intended to “unlock the incredible potential of
the Palestinian and regional economy”, according to Washington’s Middle East
envoy Jason Greenblatt.
But, writing for CNN, he admitted that “our economic plan cannot be
successful without a political agreement.”
The political elements of the peace plan are expected to be delayed until
after an Israeli election in September.
But even before the publication of the economic aspects of the deal —
which aims to raise $50 billion over a decade — the Palestinians voiced
their opposition to any upcoming plan.
They argue Washington is biased in favour of Israel, citing recent
decisions under US President Donald Trump such as cutting hundreds of
millions of dollars in Palestinian aid.
Palestinians say the economic stagnation is largely the result of decades
of Israeli occupation and measures imposed by the Israeli government such as
tight restrictions on freedom of movement.
A standoff between the two administrations in recent months has left the
Palestinian Authority short of tens of millions of dollars in tax revenues
collected by Israel on its behalf.
The budget shortfall led the Palestinian government to halve the salaries
of its more than 100,000 staff.
Relations between the Ramallah-based PA and Gaza’s Islamist rulers Hamas
have also worsened, with Palestinian president Mahmud Abbas taking measures
which have hit the enclave’s residents.
On top of disputes between the rival administrations, Palestinians
continue to suffer the effects of corruption and poor governance, according
to Palestinian economist Nasr Abdel Karim.
With Israel drawing tens of thousands of Palestinian workers, an Israeli
official described such employment as a “win-win situation”.
Many Palestinian business owners have strong economic ties with Israel,
but are worried about a backlash if they attend the Bahrain conference.
No more than a handful of Palestinians are expected to attend, including
businessman Ashraf Jaabari who is known at home in the West Bank city of
Hebron for his controversial relations with Israeli settlers.
For economist Abdel Karim, the Bahrain conference is “an attempt to avoid
politics and focus on the economic aspect, so it leads to prosperity and then
to peace.”
But for the majority of Palestinian business owners, he said, “there is a
feeling that the cost of participation will be high.”
BSS/AFP/HR/1000